Atalaya Mining PLC 2017 Operations Update and 2018 Guidance (4633C)
January 22 2018 - 1:00AM
UK Regulatory
TIDMATYM
RNS Number : 4633C
Atalaya Mining PLC
22 January 2018
22 January 2018
Atalaya Mining Plc
("Atalaya" or the "Company")
2017 Operations Update and 2018 Guidance
Atalaya Mining plc (AIM:ATYM, TSX:AYM) is pleased to announce
its operations update for the calendar year 2017 and to provide
operational guidance for 2018.
PROYECTO RIOTINTO
Fourth Third Full year
quarter quarter
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2017 2016 2017 2017 2016 2018 Guidance
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Ore mined (M tonnes) 2.5 2.3 2.4 9.3 6.8 9.7
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Waste
mined (M tonnes) 5.7 3.6 5.2 19.8 13.5 16.5
--------------- ------------ ------ ------ --------- ------- ------- --------------
Ore milled (M tonnes) 2.3 2.0 2.2 8.8 6.5 9.6
--------------- ------------ ------ ------ --------- ------- ------- --------------
Cu grade (%) 0.44 0.52 0.58 0.49 0.48 0.48
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Cu recovery (%) 86.11 84.77 85.95 85.45 82.99 84 - 86
--------------- ------------ ------ ------ --------- ------- ------- --------------
37,000
Cu production (tonnes) 8,622 8,938 10,679 37,164 26,179 - 40,000
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Copper production at Proyecto Riotinto for 2017, the first full
year of commercial production, was 37,164 tonnes up from 26,179
tonnes reported in 2016. For 2017 the operation reported a
cumulative throughput rate of 8.8Mtpa with average copper head
grade of 0.49% and a recovery rate of 85.45%. On a comparative
basis to 2016, throughput has increased as operations were
stabilised, copper grade was consistent with estimates and recovery
has improved materially. Throughput rates and recoveries for Q4
were slightly better than in Q3 with copper head grade impacting
metal contained in concentrate. Third quarter 2017 reported record
quarterly copper production at Riotinto.
Guidance for copper production for 2018 is estimated to be in
the range of 37,000 to 40,000 tonnes.
Mining operations are now running stable quarter-on-quarter. On
a combined basis, ore, waste and marginal ore amounted to 3.1Mm(3)
in Q4 2017 versus 2.7Mm(3) in Q3 2017. The new mining fleet,
commissioned during the previous quarter, is now fully operational.
Two additional production drill rigs and a 90,000-litre water
bowser were delivered to site. At the processing plant, hourly
throughput rate has improved compared with previous quarters owing
to higher equipment availability.
As part of the Company's continuous improvement programme, the
installation of an additional secondary cone crusher is under
evaluation. Liner installation at the tailings storage facilities
was completed during the quarter. Improvements to process and water
supply systems are under way.
Rehabilitation trials were initiated in the first bench of the
south waste dump facility. Dust emission indicators remain below
legal requirements. Installation of a dome covering the coarse ore
stockpile to help with dust control is ongoing with civil
foundations completed and structural fabrication under way.
Dewatering of the Atalaya pit continues as previously reported.
On-site concentrate inventories at the end of the quarter were
approximately 3,000 tonnes. All concentrate in stock at the
beginning of the quarter and produced during the quarter was
delivered to the port at Huelva.
Copper prices rose during the quarter with an average realised
price per pound of copper payable, including the QPs closed in the
period, of $2.87/lb compared with $2.18/lb in Q4 2016 and $2.66/lb
in Q3 2017. The average spot copper price during the quarter was
$3.09/lb. The realised price of shipments during the quarter
excluding QPs was approximately $3.10/lb.
All-in sustaining costs ("AISC") for 2017 slightly increased
mainly driven by the foreign exchange rate of USD and Euro. Further
details on operating cost will be provided together with the
Financial Statements but Management expects AISC to be in the range
of $2.05/lb to $2.20/lb.
Near-mine exploration continued drilling the north-west
extension of the Cerro Colorado pit. An infill drilling campaign in
Cerro Colorado pit was initiated and is planned to last for most of
2018. An updated resources and reserves statement is being prepared
as part of the expansion to the 15Mtpa Project. An airborne VTEM
geophysical survey was completed during the quarter with results
expected in Q1 2018.
The archaeological investigation currently under way in a
section of the northern wall of Cerro Colorado pit has progressed
down to the first of three levels. The programme is scheduled to
last for all of 2018 with the area then released for mining after
completion.
EXPANSION TO 15Mtpa AT PROYECTO RIOTINTO
The expansion project to 15Mtpa was formally approved during Q4
2017 and therefore launched at the beginning of December 2017.
Process flowsheet, basic design criteria and preliminary layouts
were established. Financing to initiate the expansion was raised
through a placing of new shares and this allowed long lead
equipment to be identified following a tender process and purchase
orders were issued according to the schedule. The expansion is on
track to deliver increased production by 2019.
PROYECTO TOURO
Permitting of Proyecto Touro continues to progress according to
schedule. A number of reports were received as part of the
permitting process where certain project improvements have been
suggested. The Company has already engaged a number of consultants
to address these recommendations.
The technical report is substantially completed at
pre-feasibility level of detail and in compliance with NI 43-101
guidelines. The report will be released when the additional project
improvements are incorporated to accommodate the final permitting
process.
The exploration campaign initiated the previous quarter on newly
optioned exploration concessions around Proyecto Touro is under way
continuing. As part of the campaign a first phase of an airborne
VTEM geophysical survey was completed with results expected in Q1
2018.
Alberto Lavandeira, CEO commented:
"Our first full year of production has been very satisfactory
with continuously improving throughput and recoveries at historic
highs and we are confident that our production guidance for 2018
will be on track. The decision to increase the plant's throughput
to 15Mtpa marks another milestone in the regeneration of Proyecto
Riotinto and we look forward to announcing revised reserves and
resources in due course to meet this expansion. The VTEM
geophysical surveys conducted at both Riotinto and Touro are
complete and we expect the results to be forthcoming during the
first quarter."
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) no 596/2014.
Contacts:
Charles Chichester
/ James Ash / James +44 20 7680
Newgate Communications Browne 6550
------------------------ --------------------------- ------------
Canaccord Genuity Henry Fitzgerald-O'Connor
(NOMAD and Joint / Martin Davison +44 20 7523
Broker) / James Asensio 8000
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BMO Capital Markets Jeffrey Couch/Neil +44 20 7236
(Joint Broker) Haycock/Tom Rider 1010
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This information is provided by RNS
The company news service from the London Stock Exchange
END
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